---
kind: "section"
citation: "48 C.F.R. § 232.1001"
title: "48"
number: "232.1001"
heading: "Policy."
url: "https://uscodex.org/cfr/48/232.1001"
---

# §232.1001. Policy.

- (a) As with all contract financing, the purpose of performance-based payments is to assist the contractor in the payment of costs incurred during the performance of the contract. See PGI 232.1001(a) for additional information on use of performance-based payments. However, in accordance with [10 U.S.C. 3802(a)(2)](/usc/10/3802.md?p=a-2), performance-based payments shall not be conditioned upon costs incurred in contract performance, but on the achievement of performance outcomes. Subject to the criteria in 232.1003-70, all companies, including nontraditional defense contractors, are eligible for performance-based payments, consistent with best commercial practices.
- (d) The contracting officer shall use the following standard payment terms for performance-based payments: The contractor entitlement date, if any, specified in the contract, or 14 days after receipt by the designated billing office of a proper request for payment, whichever is later.

## Notes

### Amendments

[63 FR 11537, Mar. 9, 1998, as amended at 79 FR 17936, Mar. 31, 2014; 85 FR 19688, Apr. 8, 2020; 87 FR 76995, Dec. 16, 2022]

### Source

Source: 63 FR 11537, Mar. 9, 1998, unless otherwise noted.

### Authority

Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

### Source

Source: 56 FR 36409, July 31, 1991, unless otherwise noted.

### Amendments

[63 FR 11537, Mar. 9, 1998, as amended at 79 FR 17936, Mar. 31, 2014; 85 FR 19688, Apr. 8, 2020; 87 FR 76995, Dec. 16, 2022]